Without any major movie premieres or releases in the first quarter, Nintendo’s net profit plummeted year-on-year. However, management is confident that it will eventually be able to achieve its goals for the year – the forecast will not be adjusted.
Collected the main thing from the report “Big N”:
Net revenue between April and June 2024 totaled $1.65 billion (246.6 billion yen), down 46.5% year-over-year. Meanwhile, net income also slipped year-on-year to $543.1 million (80.9 billion yen); a 55.3% drop.
While the most profitable areas – console, games and accessories sales, and the mobile segment – are having a tough time, falling 46.4% and 53.8%, respectively, merchandising and collectible cards are blooming – they brought in $18.8 million (2.8 billion yen), up 42.8% from last year’s first quarter.
The vast majority of Nintendo’s profits continue to come from overseas – the figure was 74.2%. At the end of the quarter, the Americas ranked first (44.8%), followed by Japan (25.8%), and Europe (21.3%) rounded out the top three.
Total Nintendo Switch circulation as of the end of June 2024 is 143.42 million units. During the first quarter, 2.1 million Switch units were sold, down 46.3% year-on-year. The OLED model was the most active during this period – it was bought 1.24 million times.
During the first quarter, 30.64 million titles for the hybrid console were sold. Recall, a year earlier was bought 52.21 million copies of games. The total result for all time – 1.267 billion units of interactive entertainment.
The share of game sales in “digital” remains at a high level – in the first quarter of the year it amounted to 58.9%. Compared to the previous year (47.3%), it increased, but compared to the previous quarter (59.5%), it slipped slightly.
The number of active Switch users grew to 128 million.
According to the management, the results for the last quarter are not impressive due to the fact that the first quarter of last year was overly successful thanks to the launch of The Legend of Zelda: Tears of the Kingdom and the premiere of the Mario cartoon.
In the first quarter of last fiscal year, device and “software” sales were too high for the period. All because of the Super Mario Brothers tape that spurred our video game business, as well as Tears of the Kingdom and a special console edition in honor of the game’s release.
There were no similar factors at the beginning of this year. And as the Nintendo Switch went into its eighth year, unit and game sales were down significantly year-over-year.
From the company’s report
For the entire fiscal year, the Big N intends to sell 13.5 million Switch units. However, not everyone is as optimistic as the corporation’s analysts. For example, the founder of the consulting agency Kantan Games Serkan Toto (Serkan Toto) admitted that he would be surprised if Nintendo really will be able to sell so many devices by the end of the fiscal year (March 31, 2025). He’s not sure that the corporation “still has enough powder in the powderkeg”. Mol, to achieve the planned figure without discounts will be extremely difficult. Recall, the successor Switch will be presented before April 2025.
The best-selling games for Switch
Mario Kart 8 Deluxe – 62.90 million copies sold.
Animal Crossing: New Horizons – 45.85 million copies sold.
Super Smash Bros. Ultimate – 34.66 million copies sold.
The Legend of Zelda: Breath of the Wild – 32.05 million copies sold.
Super Mario Odyssey – 28.21 million copies sold.
Pokémon Sword & Shield – 26.35 million copies sold.
Pokémon Scarlet & Violet – 25.29 million copies sold.
Super Mario Party – 20.84 million copies sold.
The Legend of Zelda: Tears of the Kingdom – 20.80 million copies sold.
New Super Mario Bros. U Deluxe – 17.61 million copies sold.
The company also announced the print runs of its new releases:
Paper Mario: The Thousand Year Door – 1.76 million copies.
Luigi’s Mansion 2 HD – 1.19 million copies.
